Listed German private-equity firm tumbles after Gotham City short-sale report

By Steve Goldstein

Shares of Mutares tumbled Thursday after the publication of a short-selling report on the German private-equity investor that seeks to turn around medium-sized companies.

Mutares shares (XE:MUX) dived as much as 28% after Gotham City Research alleged accounting irregularities and said the company appears increasingly reliant on debt. In late trade, Mutares stock fell by 14%.

Mutares shares dropped 8% on Wednesday when Gotham City's General Industrial Partners disclosed a short position in the company.

Mutares said it was a one-sided interpretation of its strategy and business transactions, as it highlighted successful exits of more than EUR200 million between 2022 and 2024. It also said it prepares and publishes financial information in accordance with legal requirements and that it is "convinced" it will meet its dividend guidance for the current financial year.

The Munich company, which is due to hold a capital markets day next month, said it will publish a further detailed response in due course.

In the first half of the year, Gotham City's short calls ranked it among the top 10 of activist short-sellers, according to Breakout Point.

-Steve Goldstein

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09-26-24 1135ET

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